The Tyro Blog

28 October 2021 - 5 min read

Business Strategies

3 strategies for reducing card transaction fees

For years now, cards have been the primary payments method for purchasing products and services, leaving the days of trading cash behind.

Although more people pay with cards these days, providing consumers with the option to pay with EFTPOS does incur transactional fees for businesses. Therefore, it’s essential to be aware of how you can reduce your card transaction fees if you run a business so you’re not outlaying unnecessary dollars.


Tyro Mobile EFTPOS

What are card transaction fees?

When a customer pays for a product or service with a card, businesses incur a fee from their acquirer for processing each transaction. These card transaction fees vary depending on the card the consumer uses and the card network the transaction is processed on, such as Visa or Mastercard®.

Typically, debit cards are less expensive for businesses to accept than credit cards but, either way, these costs can quickly add up.

Tips for reducing card transaction fees

Implement Dynamic Surcharging

Surcharging is where the cost of processing credit and debit card payments is passed onto the customer, either fully or partially – charged as a percentage, not a flat rate.

The Reserve Bank of Australia introduced the surcharging framework in 2016/17 to give businesses the right to surcharge, to cover the cost of accepting cards while ensuring consumers are not excessively charged. In other words, to ensure things are kept above board, you’re not allowed to add a surcharge that’s greater than the cost of accepting a payment by a credit or debit card.

If you decide to surcharge your customers, the surcharge amount must not exceed your cost of acceptance. Your cost of acceptance can include your merchant service fees and your EFTPOS machine rental (if you chose to include the rental fee into your cost of acceptance).

With Tyro’s Dynamic Surcharging1 you can set up and automatically apply card-specific surcharges to most card transactions with confidence. This is due to the cost of acceptance calculated for each card made available to you through the Tyro Portal. This automation removes the need for manual input and reduces the risk of error, making it an easy and efficient way to reduce EFTPOS costs.

Use Tyro’s Tap & Save

A great way to reduce EFTPOS fees is by using Tyro’s Tap & Save. This EFTPOS feature automatically routes eligible debit card transactions under $1000 through the cheapest network, saving you on processing costs2.

Tyro Tap & Save has saved customers an average of 8.5% on merchant fees, totalling up to $10.3 million, so get involved and get saving3.

Add onto the cost of products and services

Another strategy for reducing card transaction fees is by factoring them into the price of the products and services you sell.

Knowing what card your customers pay will help you determine how much to increase the selling price; because if you know the most used card and it’s transaction fee, you can increase the price of your products/services based on that figure.

As a Tyro customer, you can easily access information on how your customers pay by downloading your latest invoice from your Tyro Portal or Tyro App. The invoice will detail the type of cards your customers use and how much it costs to accept each card type.


As a business owner, you can’t avoid card transaction fees. Still, you can recover some of them with strategies like Dynamic Surcharging, Tyro Tap & Save, or by factoring them into the cost of your products and services. Do your research to figure out which one suits your business best – and get saving.

Want to learn more about Tyro’s Dynamic Surcharging and Tap & Save? Contact us on 1300 00 TYRO or to discuss how we can put these solutions to work for you.

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1 Dynamic Surcharging is only available on CounterTop EFTPOS and Mobile EFTPOS machines and excludes eCommerce transactions.

2 Tyro does not guarantee any cost savings by opting in for Tap & Save. Savings on eligible transactions processed through the cheapest network vary for each business depending on their card mix, transaction volume and amount, industry, and pricing plan. Eligible transactions are contactless debit card transactions less than $1,000. Tap & Save is not available on Special Offer pricing which includes some flat fee simple pricing offers or where you surcharge on debit card transactions as cost savings may not be realised. For details refer to or call 1300 00 TYRO (8976).

3 8.5% savings on Merchant Service Fees (MSF) represents the potential savings of Tyro eligible merchants (calculated as an average), over the period December 2017 to June 2020 and was based on actual eligible transactions processed during this period. Actual savings vary  for each business depending on their card mix transaction volume and amount, industry and pricing plan. $10,312,097 represents the total savings on MSF calculated within this same period.